Question 1

Most economists who have studied the health care industry have concluded that there is

Accepted Answer

A)   an underallocation of resources for health care in the United States.
B)   an overallocation of resources for health care in the United States.
C)   insufficient technological progress in the medical industry.
D)   a need for government price controls for physicians' fees.E) A) and D)
F) B) and C)

Question 2

The following are supply factors in the health care market, except

Accepted Answer

A)   number of physicians and nurses.
B)   productivity of health care workers.
C)   medical technology.
D)   health care insurance.E) All of the above
F) B) and D)

Question 3

Subsidies for those required to purchase health insurance under the personal mandate provision of the PPACA are

Accepted Answer

A)   limited to those whose income is less than 133 percent of the federal poverty line.
B)   limited to those whose income is at or below the federal poverty line.
C)   provided to some individuals in the upper half of the income distribution.
D)   a fixed amount per person for those eligible to receive the subsidies.E) B) and D)
F) A) and B) C

Question 4

The Patient Protection and Affordable Care Act (PPACA) sets up so-called insurance exchanges where consumers can compare various insurance policies that meet certain government-set standards.

Accepted Answer

A) True 
 B)False

Question 5

All of the following factors lead to overconsumption of health care, except

Accepted Answer

A)   the practice of defensive medicine.
B)   health insurance that pays most of the health care costs.
C)   a government tax subsidy on employer-financed health insurance.
D)   rising incomes resulting from economic growth.E) All of the above
F) A) and D) D

Question 6

Which of the following is not an element of the Patient Protection and Affordable Care Act (PPACA) ?

Accepted Answer

A)   Insurance companies can no longer deny coverage to anyone on the basis of a preexisting condition.
B)   To contain costs, insurance companies may impose annual or lifetime expenditure caps on those that they insure.
C)   All firms with 50 or more employees are required to purchase insurance for their workers or pay a fine
D)   Individuals who are not covered by either government- or employer-provided insurance are required to purchase health insurance for themselves and their dependentsE) A) and C)
F) None of the above

Question 7

People 65 years old and older constituted about 9 percent of the U.S. population in 1960. In 2014, this percentage was around

Accepted Answer

A)   the same as in 1960.
B)   14 percent.
C)   25 percent.
D)   5 percent.E) C) and D)
F) A) and D)

Question 8

Those without any health insurance in the U.S. tend to be the following groups, except

Accepted Answer

A)   those who are in excellent health and those with the poorest health.
B)   workers in small firms.
C)   minimum-wage workers.
D)   those receiving Social Security payments.E) A) and C)
F) C) and D)

Question 9

(Consider This)  The PPACA was intended to slow growth in health care costs and expand health care coverage to all Americans. Which of the following is not one of problems that has occurred since implementation?

Accepted Answer

A)   Firms avoided the employer mandate by cutting worker hours to part-time status.
B)   The number of people uninsured has risen.
C)   Many of the state insurance exchanges have either gone bankrupt or are in serious danger of going bankrupt.
D)   Pricing requirements for health insurance sold through exchanges discouraged younger, healthier adults from enrolling.E) A) and C)
F) A) and B)

Question 10

The problem of asymmetric information is that

Accepted Answer

A)   neither health care buyers nor providers are well-informed.
B)   health care providers are well-informed, but buyers are not.
C)   the outcomes of many complex medical procedures cannot be predicted.
D)   insurance companies are well-informed, but policy purchasers are not.E) A) and B)
F) None of the above

Question 11

If labor productivity in the health care industry rises very slowly relative to wages and salaries in the industry, this would tend to

Accepted Answer

A)   increase the demand for health care.
B)   decrease the demand for health care.
C)   increase the supply of health care.
D)   increase the cost of health care.E) A) and C)
F) C) and D)

Question 12

Preferred provider organizations (PPOs)

Accepted Answer

A)   charge a fixed amount per member, hire many of their own physicians, and provide health services only to members.
B)   require that their members give up the right to file medical malpractice suits.
C)   are illegal in several states.
D)   require physicians and hospitals to provide discounted prices for their services as a condition for being included in the insurance plan.E) A) and B)
F) A) and C) D

Question 13

One of the provisions of the PPACA is a personal mandate that all individuals

Accepted Answer

A)   pay a $1,000 deductible and 20 percent co-pay on all medical care except annual check-ups or preventative care.
B)   contribute at least 30 percent of the total cost of employer-provided health insurance.
C)   purchase health insurance for themselves and their dependents unless they are already covered by government or employer-provided insurance.
D)   with preexisting conditions must purchase a specially designated government insurance plan.E) A) and C)
F) All of the above

Question 14

The increasing use of part-time and temporary workers can partly be blamed on the rising health care costs to employers.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following factors has contributed to rising health care prices in the United States?

Accepted Answer

A)   The supply of physicians per 100,000 people has decreased since 1975.
B)   Productivity growth in the health care industry has been negative in recent years.
C)   Improvements in medical technology have significantly increased the number of patients that can be treated each year.
D)   The supply of physicians per 100,000 people has risen since 1975, but not as fast as the increase in the demand for physicians' services.E) A) and D)
F) B) and C)

Question 16

As a percentage of GDP, health care spending in the United States has

Accepted Answer

A)   decreased substantially since 1960.
B)   increased slightly since 1960.
C)   increased substantially since 1960.
D)   remained relatively constant since 1960.E) A) and B)
F) A) and C)

Question 17

The prominence of employer-provided health insurance in the U.S. is one major cause of the overconsumption and rapidly rising costs of health care in the country.

Accepted Answer

A) True 
 B)False

Question 18

The heavy reliance on private health insurance in the U.S. began during World War II, as a

Accepted Answer

A)   legal requirement for employment.
B)   patriotic duty of firms.
C)   way of imitating European employment practices.
D)   response by employers to the wage controls in effect then.E) B) and C)
F) A) and D)

Question 19

Given the availability of the Medicaid program, why are so many poor people uninsured?

Accepted Answer

A)   Because only a fixed percentage of the population can participate in Medicaid at any time.
B)   Because many poor people earn enough that they do not qualify for Medicaid.
C)   Because nonincome requirements screen many poor people from the program.
D)   Because only native-born Americans are eligible for the program.E) B) and C)
F) A) and D)

Question 20

The Patient Protection and Affordable Care Act requires all firms to purchase health insurance for their employees or pay a $2,000 fine.

Accepted Answer

A) True 
 B)False

Exam 24: Health Care

Most economists who have studied the health care industry have concluded that there is

Correct AnswerverifiedShow Answer

The following are supply factors in the health care market, except

Correct AnswerverifiedShow Answer

Subsidies for those required to purchase health insurance under the personal mandate provision of the PPACA are

Correct AnswerverifiedC

The Patient Protection and Affordable Care Act (PPACA) sets up so-called insurance exchanges where consumers can compare various insurance policies that meet certain government-set standards.

Correct AnswerverifiedShow Answer

All of the following factors lead to overconsumption of health care, except

Correct AnswerverifiedD

Which of the following is not an element of the Patient Protection and Affordable Care Act (PPACA) ?

Correct AnswerverifiedShow Answer

People 65 years old and older constituted about 9 percent of the U.S. population in 1960. In 2014, this percentage was around

Correct AnswerverifiedShow Answer

Those without any health insurance in the U.S. tend to be the following groups, except

Correct AnswerverifiedShow Answer

(Consider This) The PPACA was intended to slow growth in health care costs and expand health care coverage to all Americans. Which of the following is not one of problems that has occurred since implementation?

Correct AnswerverifiedShow Answer

The problem of asymmetric information is that

Correct AnswerverifiedShow Answer

If labor productivity in the health care industry rises very slowly relative to wages and salaries in the industry, this would tend to

Correct AnswerverifiedShow Answer

Preferred provider organizations (PPOs)

Correct AnswerverifiedD

One of the provisions of the PPACA is a personal mandate that all individuals

Correct AnswerverifiedShow Answer

The increasing use of part-time and temporary workers can partly be blamed on the rising health care costs to employers.

Correct AnswerverifiedShow Answer

Which of the following factors has contributed to rising health care prices in the United States?

Correct AnswerverifiedShow Answer

As a percentage of GDP, health care spending in the United States has

Correct AnswerverifiedShow Answer

The prominence of employer-provided health insurance in the U.S. is one major cause of the overconsumption and rapidly rising costs of health care in the country.

Correct AnswerverifiedShow Answer

The heavy reliance on private health insurance in the U.S. began during World War II, as a

Correct AnswerverifiedShow Answer

Given the availability of the Medicaid program, why are so many poor people uninsured?

Correct AnswerverifiedShow Answer

The Patient Protection and Affordable Care Act requires all firms to purchase health insurance for their employees or pay a $2,000 fine.

Correct AnswerverifiedShow Answer

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C

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D

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D

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